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The Markets
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The Markets
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Proactive UK has moved.
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Banks

Nationwide members start revolt against Virgin Money takeover

Nationwide Building Society is facing a revolt by members over its proposed £2.9 billion takeover of Virgin Money.

Some 1,000 signatures have been collected in a petition calling for Nationwide’s 16 million members to be given a say on the deal.

Mikael Armstrong, who is leading the campaign, accused the building society of strong-arming over the deal, which was announced in early March.

“I started the petition to give Nationwide members a say on the proposed takeover of Virgin Money,” he told the Standard.

“At various stages along the way, I have been gagged or ignored - just like other Nationwide members.”

Nationwide says the takeover would bring benefits to members, with a spokesperson saying on Friday that the deal would improve its financial strength.

“This means we will be able to provide a greater level of member financial benefits and incentives, including through better savings and mortgage rates compared to the market average,” the spokesperson added.

Nationwide also denied attempting to gag members, highlighting member polls on Friday that appeared to show support for the deal.

Armstrong argued Nationwide appeared “to be going to extraordinary lengths to rush through a deal to fill the pockets of Virgin Money shareholders with Nationwide members' capital,” and “without "detailed due diligence”.

“Nationwide members want - and must be given - a vote on the proposed takeover of Virgin Money,” he said.

“Denying the society's members, its own customers and owners, a vote on the deal is now an obscene show of arrogance.”

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